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Microchip Factory to Sublease to SiCamore Semi

Compass Commercial brokers Ron Ross, CCIM and Joel Thomas, CCIM represented the landlord, Gene Derfler, in facilitating the sublease of the microchip factory located at 307 SW Columbia Street in Bend, to SiCamore Semi (Silicon Power Corporation). The plant was formerly occupied by MicroSemi, who were bought out in 2018 by Microchip Technology.

The brokers were engaged late last year to market the property for lease. While MicroSemi still had over two years remaining on their lease, given the uniqueness of the property the landlord wanted to begin marketing the property early. During the initial marketing efforts, the brokers discovered that there was a pending deal to for Silicon Power to purchase the assets of MicroSemi.

Once the deal with new tenant SiCamore Semi was in play, the landlord, recognizing the complexities of the transaction, relied upon Ron and Joel to navigate the transaction. The brokers were able to negotiate a sublease for the remaining approximately two years of the current lease as well as a new 10 year lease with Silicon Power.

Silicon Power Corp. of Malvern, Pennsylvania also bought the assets of the factory which has been in operation since the 1980s. Read more about Silicon Power’s plans for the facility from The Bulletin.

For more information on this transaction, please contact Ron Ross, CCIM or Joel Thomas, CCIM at Compass Commercial Real Estate Services at 541.383.2444.